When you apply for a credit card, there is a good chance that you will be excited about the benefits and features offered by the card. This is why it can be disappointing if the card issuer refuses your request to open an account.
Unfortunately, people can be denied credit cards all the time. Here are four of the most common reasons that could happen to you.
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1. Your credit score is not high enough
A low credit score is one of the most common reasons you might not be approved for a credit card. This is especially likely if you are applying for a card with a generous reward program or many cardholder benefits. Indeed, these cards are often reserved for the most qualified candidates.
The good news is that if you are denied a card due to a low credit score, there are many other options. For example, you can apply for a secured card or a credit card designed for people with no credit history or no score.
These cards offer easy approval. You can use them to create credit and possibly try again to get the original card you wanted.
2. You owe too much money
If you already have a lot of debt, the credit card companies may not be willing to give you more credit, especially if they think you are overwhelmed. In this situation, the best thing to do is work on paying off your debt. Once you’ve reduced your balance to a more manageable level, card issuers are more likely to approve your new card request.
3. You don’t have reliable proof of income
Card companies want to make sure that you can reimburse the charges you make on your card. They can look at your income, and if you don’t have reliable proof of that income (like pay stubs or tax returns) you may not be approved.
Applying with a co-signer can be helpful in these situations, as the card company takes both your income and your credentials. and the income and credentials of the account co-signer. This could open the door to getting a card approved even if you are still working to increase your income. Keep in mind that ideally you’ll avoid carrying a balance – so don’t charge more than you can afford based on your income.
4. You’ve applied for too many credit cards recently
Some card companies won’t give you new credit if you’ve recently applied for too many other cards. If this happens, just wait until some of the inquiries disappear from your credit report.
Since this is a common reason you are refused a new card, choose which new cards you request. Don’t necessarily apply for everything that looks like this strength be a good candidate – research your options and apply for a new credit card only if it’s really worth it.